Tag: Motley Fool

The Rio Tinto Limited (ASX: RIO) share price fell by more than 10% in September 2021.

What could be a reason for the decline?

Commodity prices

A resource business is heavily reliant on the price of the commodity for how much profit it’s able to make.

It costs a business a certain amount of money to extract a tonne of material. The production expenses per tonne cost that amount whether the commodity price is US$50 per tonne or US$250 per tonne.

When prices go up, most of that extra revenue turns into profit for the company. But the same is true when prices fall, that extra profit disappears.

Rio Tinto is one of the largest iron ore miners in the world. A big part of its profit comes from the iron ore division. Lower iron ore prices are likely to come with lower profits.

In September 2021, the iron ore price fell below US$100 per tonne.

Just a few months ago it was well north of US$200.

Evergrande

The Rio Tinto share price went lower in the second half of the month as commentary increased about the potential problems with Evergrande.

Evergrande is a Chinese real estate business that was facing debt problems with its balance sheet, making debt repayments and continuing to make progress on its building projects. It’s actually one of the bigger/biggest businesses in the world when it comes to revenue.

As a huge property developer, it is also one of the biggest users of steel (and therefore iron ore). A deterioration of the Evergrande business, or even a bankruptcy, could mean less demand for iron ore.

Rio Tinto’s recent profit result

The resources giant acknowledged that higher commodity prices were the main driver of its FY21 result. In the first half of the 2021 financial year, it achieved an average iron ore price of $154.9 per wet metric tonne, equating to a $168.4 per dry metric tonne.

Rio Tinto’s iron ore division saw underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rise 109% to US$16 billion, net operating cashflow went up 102% to US$11 billion and underlying earnings surged 124% to US$10.2 billion.

When looking at the overall earnings, it is clear how much iron ore generates of the bottom line. Rio Tinto’s overall HY21 result saw underlying EBITDA growth of 118% to US$21 billion, net operating cashflow growth of 143% to US$13.66 billion and underlying earnings growth of 156% to US$12.17 billion.

This high level of profit and cashflow allowed the business to grow its ordinary dividend by 143% to US$3.76 per share and also declare a special dividend of US$1.85 per share

Is the Rio Tinto share price a buy?

The business is making progress towards the large lithium project called Jadar.

Rio Tinto’s CEO Jakob Stausholm said:

We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long-term, with the right teams in place to unleash our full potential.

Opinions are mixed on the mining giant. The Rio Tinto share price is rated as a sell by UBS with a price target of $86, with lower iron ore prices.

However, Citi calls it a buy with a price target of $125, with strong aluminium prices being a good positive.

The post Why did the Rio Tinto (ASX:RIO) share price have such a lousy month in September? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with BIG yields
• Rio Tinto (ASX:RIO) share price lifts as CEO eyes critical minerals expansion
• How China’s energy crisis could be good for BHP (ASX:BHP) and Rio Tinto (ASX:RIO)
• ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
• Here’s why the Rio Tinto (ASX:RIO) share price is down 20% in 3 months

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3uBId60

When it comes to dividends, the banking sector is a great place for investors to look. Among the most popular options at this side of the market is the Westpac Banking Corp (ASX: WBC) dividend. And it isn’t hard to see why.

According to a note out of Morgans, its analysts expect Australia’s oldest bank to pay a fully franked dividend of $1.36 per share in FY 2022.

Based on the current Westpac share price of $25.41, this will mean a yield of 5.4%.

How does the Westpac dividend compare to the rest of the banks?

Elsewhere in the sector, Morgans is forecasting a $1.65 per share fully franked dividend from Australia and New Zealand Banking GrpLtd (ASX: ANZ) in FY 2022. This represents a 6% yield for investors.

The broker isn’t expecting an as generous yield from Commonwealth Bank of Australia (ASX: CBA). It has pencilled in a fully franked dividend of $4.28 per share in FY 2022. With the CBA share price currently fetching $100.08, this will mean a yield of 4.3%.

The final big four bank, National Australia Bank Ltd (ASX: NAB), is forecast by Morgans to provide an attractive yield in FY 2022. Its analysts are forecasting a $1.33 per share fully franked dividend. Which, based on the current NAB share price of $27.27, will mean a 4.9% yield for investors.

Finally, Macquarie Group Ltd (ASX: MQG) is expected to pay a dividend of $5.81 per share in FY 2022. This equates to a yield of 3.3% based on the current Macquarie share price.

Which banks are in the buy zone?

Of the five banks mentioned, just ANZ and Westpac have been named as buys by Morgans.

The broker has an add rating and $29.50 price target on Westpac’s shares and an add rating and $34.50 price target on ANZ’s shares.

The post How does the Westpac (ASX:WBC) dividend compare to the banking sector? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Here’s what happened to the CBA (ASX:CBA) share price in September
• These were the best performing ASX bank shares in September
• How did the NAB (ASX:NAB) share price perform in September?
• Why CBA, Mount Gibson, Pilbara Minerals, & Virgin Money shares are dropping

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3otBJ8k

The Zip Co Ltd (ASX: Z1P) share price was a positive performer in September.

The buy now pay later (BNPL) provider’s shares rose 3.3% over the month.

This compares to a 2.6% decline by the S&P/ASX 200 Index (ASX: XJO) over the period.

Why did the Zip share price beat the market in September?

The Zip share price overcame weakness in the tech sector and rising short interest to record a decent gain in September.

This was driven by the release of a couple of positive announcements out of the growing BNPL provider.

The first was the release of its Retail Investor Day presentation. That presentation revealed the company has plans to launch several new products in the near term.

This includes savings accounts, rewards, and cryptocurrencies. The latter will see Zip allow users to buy, sell, hold, and even pay in cryptocurrencies.

What else was announced?

Also giving the Zip share price a boost was news that it has made a major strategic investment in India.

According to the release, Zip has agreed to make a strategic US$50 million investment in India-based BNPL operator ZestMoney.

ZestMoney was founded in 2015 and is now one of the largest and fastest growing BNPL platforms in India. It currently has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.

The company notes that the India market is forecast to have US$300 billion+ in BNPL payment volume by FY 2026.

Much like its deal with Quadpay, which ultimately saw Zip acquire it in full, Zip has negotiated terms to increase its shareholding over time.

All in all, management believes this investment is consistent with its strategy to build a truly global BNPL business. And judging by the Zip share price performance, it appears as though the market agrees.

The post What happened for the Zip (ASX:Z1P) share price in September? appeared first on The Motley Fool Australia.

More reading

• The best day in 10 months, and Zip’s Microsoft deal. Scott Phillips on Nine’s Late News
• ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound
• Zip (ASX:Z1P) share price jumps on Microsoft integration agreement
• Why the Zip share price plunged 6% this morning
• Afterpay (ASX:APT) and Zip (ASX:Z1P) share price falls as Mastercard opens up the BNPL sector

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2YgRggY

If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

This leading self-storage operator could be a top option for income investors. It has been growing at a solid rate over the last decade thanks to solid demand and its growth through acquisition strategy in a highly fragmented market.

The good news is that even after reaching 210 centres, management sees plenty of opportunities to grow its network. In fact, the company finished FY 2021 with ~$900 million of investment capacity to support its growth through acquisition strategy.

Management is expecting underlying earnings per share growth of at least 10% in FY 2022. If it were to grow its distribution by the same rate, it would mean a 9.02 cents per share distribution. Based on the current National Storage share price of $2.28, this will mean a yield of 4%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share with a good yield is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets across five sectors. These are almonds, cattle, vineyards, cropping, and macadamias.

These properties are leased to some of the biggest players in the agricultural sector on very long term agreements. For example, the company currently has a weighted average lease expiry of 9.3 years. Combined with periodic rental increases, this gives the company great visibility on its future earnings and distributions.

Speaking of which, in FY 2022 the company intends to increase its distribution by 4% to 11.73 cents per share. Based on the current Rural Funds share price of $2.65, this represents an attractive yield of 4.4%.

The post 2 ASX dividend shares with good yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive 4%+ yields
• These 2 ASX shares are going ex-dividend today
• 3 reasons why Rural Funds (ASX:RFF) is a quality ASX dividend share
• Here are 2 ASX dividend shares with attractive yields
• These 5 ASX shares are going ex-dividend this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mnVOuf

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their sell rating and $28.00 price target on this banking giant’s shares. Citi doesn’t expect ANZ to benefit as greatly from potential rate increases in New Zealand as the market may think. In addition, the broker has noted that recent APRA data suggests there has been a sharp contraction in ANZ’s mortgage book. The ANZ share price was fetching $27.44 at Friday’s close.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and cut their price target on this iron ore producer’s shares to $12.50. The broker continues to be bearish on miners with exposure to low grade iron ore. Morgan Stanley is expecting low grade iron ore prices to be weak due to lower overall demand and a preference for high grade ore. The Fortescue share price was trading at $14.57 on Friday afternoon.

Ramsay Health Care Limited (ASX: RHC)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $60.00 price target on this private hospital operator’s shares. This follows the release of an update on elective surgery restrictions in Australia. The broker suspects that the restrictions could impact Ramsay’s FY 2022 earnings by upwards of $50 million. Morgan Stanley expects this to stifle the company’s growth this year. The Ramsay share price was fetching $68.33 at the end of the week.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX bank shares in September
• Why the Fortescue (ASX:FMG) share price was sold off in September
• These were the 5 worst performing ASX 200 shares in September
• 2 ASX 200 dividend shares named as buys for October
• Ramsay (ASX:RHC) share price on watch on Friday after update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mgU06k

September turned out to be a pretty disappointing month for the S&P/ASX 200 Index (ASX: XJO), now that we have the gift of hindsight.

Over the month just gone, the ASX 200 went backwards by about 2.7%. It fell from roughly 7,535 points at the start of the month to the 7,332 points that the ASX 200 closed at on Thursday 30 September.

But how did the ASX 200’s largest constituent, the Commonwealth Bank of Australia (ASX: CBA), fare over September?

As the largest share by market capitalisation (and therefore ASX 200 weighting), CBA usually sets the trend for the entire ASX 200. So, let’s check out how this ASX bank contributed to the ASX 200 performance over September.

The ups and downs of the CBA share price

So, CBA started September at a share price of $100.12. On Thursday, this bank closed at a price of $102 a share, on the dot. That puts the bank in the green for September, clocking a rise of 1.88% for the month.

Of course, that doesn’t tell us all there is to know about CBA’s September. The bank had quite a month, rising as high as $104.59 later in September, and falling as low as $99.64 a share before that.

You can see what kind of a month CBA shares had here:

So, now we are officially in October, what’s next for CBA?

Could CBA shares be a buy?

One broker who doesn’t think so is Morgan Stanley. As my Fool colleague James covered recently, this broker currently rates CBA as ‘underweight’ with a 12-month share price target of just $90. That implies a potential 12-month downside of roughly 10% from recent pricing.

Morgan Stanley is estimating that financial regulators will have to take steps to cool the Aussie housing market soon, which might lead to a slowdown in credit growth and a potential negative impact on the CBA share price.

The post Here’s what happened to the CBA (ASX:CBA) share price in September appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX bank shares in September
• Why CBA, Mount Gibson, Pilbara Minerals, & Virgin Money shares are dropping
• Why the CBA (ASX:CBA) share price is down 4% today
• The CBA (ASX:CBA) share price is underperforming against the big four banks today
• ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3isg5Od

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Blackmores Limited (ASX: BKL)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and $100 price target on this health supplements company’s shares. The broker notes that there is speculation Blackmores could be a takeover target. Based on other similar transactions, it feels that an offer of $105.00 per share could be made. Credit Suisse suggests that a large multinational that already has operations in Australia would be a suitable suitor. The Blackmores share price ended the week at $93.07.

Integral Diagnostics Ltd (ASX: IDX)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this diagnostic imaging services provider’s shares to $5.55. This follows news that the company has agreed to acquire The X-Ray Group for $37.5 million. Citi was pleased with the price paid and expects the deal to be upwards of 5% accretive to earnings per share. In light of this, it has upgraded its earnings estimates and price target accordingly. The Integral Diagnostics share price was fetching $5.06 on Friday.

Liontown Resources Limited (ASX: LTR)

Analysts at Macquarie have retained their outperform rating and $1.70 price target on this lithium developer’s shares. According to the note, Macquarie is bullish on lithium prices thanks to strong demand in China and Liontown is one of its top two picks in the sector. It also sees a number of near term catalysts that could boost its shares. This includes the securing of offtake and funding agreements for the Kathleen Valley lithium project. The Liontown Resources share price ended the week at $1.36.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX lithium shares in September
• Why is the Blackmores (ASX:BKL) share price slumping 4% today?
• Which ASX shares are the top movers in the ASX 300 today?
• 5 things to watch on the ASX 200 on Friday
• Why is the Liontown (ASX:LTR) share price sinking 6% today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3opaCeI

The Bank of Queensland Limited (ASX: BOQ) share price has pushed higher over the past decade, up around 40%. In comparison, the S&P/ASX 200 Index (ASX: XJO), is up around 85% over the same time frame.

During October 2019, Bank of Queensland shares were hovering around today’s levels, before freefalling thereafter. While the regional banks’ shares have somewhat recovered, they are still a long way off 2015’s record high $13 mark.

Nonetheless, we wind the clock back and see how much an investor would have made if they had invested $1,000 in Bank of Queensland shares a decade ago.

How much would your initial investment be worth now?

If you spent $1,000 on Bank of Queensland shares exactly 10 years ago, you would have picked them up for $6.45 apiece. The purchase would deliver approximately 155 shares without reinvesting the dividends.

Looking at Friday’s closing price, the Bank of Queensland share price finished at $9.23. This means those 155 shares would be worth $1,430.65 (155 shares x $9.23).

In percentage terms, the initial investment implies a gain of around 43.07% or a yearly average return of 3.65%. Comparing that to the ASX 200, the benchmark index has given back 6.22% over a 10-year period.

And the dividends?

Over the course of the last decade, the Bank of Queensland has made a total of 19 dividend payments from 2011 to 2021. Its most recent dividend distributions were significantly reduced due to the pandemic severely affecting its operations and bottom line.

Adding those 19 dividends payments gives us an amount of $6.08 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $942.40 (155 shares x 6.08).

When putting both the initial investment gains and dividend distribution, an investor would have made roughly $2,373.05.

Bank of Queensland share price snapshot

Over the past 12 months, the Bank of Queensland share price has moved 65% higher and is up around 20% year to date.

Bank of Queensland presides a market capitalisation of roughly $5.92 billion, with more than 640 million shares on its registry.

The post If you invested $1,000 in Bank of Queensland (ASX:BOQ) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

More reading

• Why Bank of Queensland (ASX:BOQ) shares are up 66% in the past 12 months
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”
• Confirmed: APRA is planning action on home loans, ASX 200 banks drop
• These experts believe the future is bright for the Bank of Queensland (ASX:BOQ) share price
• How has the Bank of Queensland (ASX:BOQ) share price been performing since reporting results?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BhkJ8M

The weekend could be a good time to start thinking about ASX shares that may be able to benefit from the reopening play in Australia’s two biggest cities.

Some businesses have had their store profit impacted for a number of months. But they could change in the coming weeks with both NSW and Victoria expected to lessen restrictions.

The below two ASX shares could be opportunities to consider:

City Chic Collective Ltd (ASX: CCX)

City Chic is a retailer of plus-size clothing, footwear and accessories. It has a store network across Australia and New Zealand, but it also has businesses and partnerships in the northern hemisphere as well.

It’s currently rated as a buy by the broker Morgan Stanley. The price target is $6.65, that suggests the City Chic share price could increase by around 5% over the next 12 months, if the broker is right. Morgan Stanley is encouraged by the recent performance of Torrid, one of City Chic’s rivals in the US.

Despite all of the impacts of COVID-19 during FY21, it reported double digit growth. Sales revenue rose 32.9% to $258.5 million. The various profit levels grew faster – underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 59.8% to $42.4 million whilst underlying net profit rose 80.6% to $24.9 million.

A key move by the ASX share during the year was buying the Evans online and wholesale business in the UK. That has made City Chic the market leader in the country. Management said the first six months of trading were pleasing, with operations profitable over the period. The integration is now complete and inventory levels are back to a commercial level.

It also bought Navabi, a European plus-size business that predominately operates in Germany.

The first eight weeks of FY22 saw continued “strong” positive top line and comparable sales growth.

Morgan Stanley puts the City Chic share price at 35x FY23’s estimated earnings.

Reject Shop Ltd (ASX: TRS)

The Reject Shop is a business with a national network of discount stores.

Morgan Stanley also believes that Reject Shop shares are a buy, with a price target of $10.

The broker believes that once restrictions lift, the ASX share will be able to perform better over the next couple of years.

Morgan Stanley liked the FY21 result.

Despite sales falling by 5.1% to $778.7 million, profitability across the business increased significantly. During the year, Reject Shop reduced its cost of doing business (CODB) by approximately $22.5 million. Of that total, $8.8 million came from administrative expenses and $13.7 million from store expenses.

Some of the savings achieved by the ASX share will be re-invested to improve technology and systems across the business as it prepares for growth. At a store level, Reject Shop said that the simplification and standardisation of in-store processes during the year were main drivers of store labour reducing to 13.9% of sales, compared to 14.5% in the prior corresponding period.

Reject Shop’s underlying earnings before interest and tax (EBIT) increased 110% to $9.4 million, whilst underlying net profit jumped 134% to $6.4 million.

During FY21, the company opened 10 new stores and closed three years. In FY22 it’s expecting to open a further 20 stores, whilst closing five unprofitable or underperforming stores.

However, the international supply chain continues to result in higher shipping costs.

The Reject Shop share price is valued at 14x FY23 estimated earnings.

The post 2 ASX shares that may be worth researching this weekend appeared first on The Motley Fool Australia.

More reading

• Up 116% in a year, is the City Chic (ASX:CCX) share price good value?
• 3 beaten-up ASX shares that are exciting us: experts
• These 2 ASX shares have been named as good opportunities
• Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy
• These three ASX retail shares delivered double (and triple!) digit returns in 2021

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2YnObvH

September was a difficult month for the S&P/ASX 200 Index (ASX: XJO). The benchmark index lost a disappointing 2.6% of its value during the month to finish the period at 7,332.2 points.

One area of the market that was reasonably resilient was the banking sector. Here are a few highlights from the month:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price was the best performer among the major banks with an impressive 9.1% gain. The catalyst for this was the release of a trading update from the investment bank. According to the release, Macquarie expects its first half profits to be down slightly on the second half of FY 2021. This was significantly better than the market was expecting and led to Ord Minnett retaining its accumulate rating and lifting its price target to $190.00.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price was a solid performer in September, rising 4.2% over the 30 days. This was despite there being no news out of Australia’s largest bank. Though, with its shares pulling back since the middle of August, some investors may have been topping up their positions. Particularly given how Bell Potter has a buy rating and $118.00 price target on its shares.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price beat the market decline with a modest 1.1% gain during the month. The only real announcement out of the bank last week was its ESG update. That update revealed how the banking giant is complying with the push towards a sustainable and diverse business model. ANZ highlighted that it has funded and facilitated $14 billion of sustainable finance.

Westpac Banking Corp (ASX: WBC)

The Westpac share price wasn’t far behind with a 0.7% gain in September. This was despite the bank revealing that its deal to sell its Pacific businesses to Kina Securities Limited (ASX: KSL) for up to $420 million was blocked by regulators. This ultimately led to Australia’s oldest bank pulling the plug on the deal.

The post These were the best performing ASX bank shares in September appeared first on The Motley Fool Australia.

More reading

• Why CBA, Mount Gibson, Pilbara Minerals, & Virgin Money shares are dropping
• Why the CBA (ASX:CBA) share price is down 4% today
• Top ASX shares to buy in October 2021
• 2 ASX 200 dividend shares named as buys for October
• The CBA (ASX:CBA) share price is underperforming against the big four banks today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3uv1lmi